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2001-2002 Comparative Citrus Budgets
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 Material Information
Title: 2001-2002 Comparative Citrus Budgets
Physical Description: Fact Sheet
Creator: Muraro, Ronald P.
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2003
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Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Published February 2003."
General Note: "FE 350"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00001962:00001

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2001-2002 Comparative Citrus Budgets1 Ronald P. Muraro2 1. This is EDIS document FE 350, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published February 2003. Please visit the EDIS website at http://edis.ifas.ufl.edu. 2. Ronald P. Muraro, Professor and Farm Management Economist, Department of Food and Resource Economics, Citrus Research and Education Center, Lake Alfred, FL, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. The Institute of Food and Agricultural Sciences is an equal opportunity/affirmative action employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to race, color, sex, age, handicap, or national origin. For information on obtaining other extension publications, contact your county Cooperative Extension Service office. Florida Cooperative Extension Service/Institute of Food and Agricultural Sciences/University of Florida/Christine Taylor Waddill, Dean. Annually, comparative citrus budgets are tabulated for the Central Florida, Southwest Florida, and Indian River citrus producing areas. The listed estimated comparative costs in Tables 1, 2, and 3 (Table 4 contains footnotes u, v, w, x, and y for Tables 1, 2,and 3) are examples only and may not represent your particular grove situation. The budget cost items for Central Florida and Indian River represent a custom-managed operation, and the budget cost items for Southwest Florida costs represent an owner-managed operation. The 2001-2002 comparative budgets are presented in three scenarios: 1. Low Cost Processed Fruit Cultural Program. 2. Reduced Cost Processed/ Fresh Fruit Cultural Program. 3. Typical/Historical Fresh Fruit Cultural Program. Scenarios 1 and 2 represent costs of two possible cultural programs directed toward reducing expenditures for fruit grown primarily for the processed market. The third scenario represents typical costs of grove practices which have been performed for citrus grown for the fresh fruit market. Modified herbicide and/or spray and fertilizer programs account for the reduced costs. Note: Before modifying a grove management program to reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultural problems (nutrition, disease, etc.) for the specific grove site should be made. Each budget (Tables 1, 2, and 3) lists the costs of individual grove care practices normally performed in a citrus grove. The costs are categorized into cumulative sub-totals for the unirrigated processed program and the irrigated fresh fruit program. Although the estimated annual per-acre grove costs listed in each budget are representative for a mature citrus grove (10+ years old), the grove care costs for a specific grove site may differ depending upon tree age, tree density, and grove practices. Extensive tree loss due to blight or tristeza could at least double, if not increase more, the tree replacement and care costs. Also, travel and setup costs may vary due to the size of the citrus grove and distance from the grove equipment barn. The mandatory decontamination requirements to help control the spread of Citrus Canker add to the total operational costs as illustrated in Table 5. Included with the comparative budget sheets are estimated "delivered-in" costs for Central Florida

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2001-2002 Comparative Citrus Budgets 2 Valencia oranges, Southwest Florida Hamlin oranges, and Indian River grapefruit (Table 5). The "delivered-in" costs for oranges represent the processed fruit market, while the cost for grapefruit represents the fresh market. The estimated "delivered-in" costs include total cultural/production costs, management and regulatory costs, and harvesting costs. The budgeted cost information presented herein is the most current available. The budget cost items have been revised to reflect current grove practices being used by growers (e.g., chemical mowing, different spray materials and rates of fertilization, microsprinkler irrigation, more reset trees, etc.). Although average per-acre yields have increased due to higher per-acre tree densities, the drought situation in recent years has increased tree stress and may have affected yields. Additional information on budgeting and cost analysis can be obtained by contacting the author or your County Extension Citrus Specialist. For a more detailed report, see the following websites: Economic Information Report EI-02-9, Budgeting costs and returns for Central Florida citrus production 2001-02, http://www.lal.ufl.edu/extension/central-floridabudget.pdf Economic Information Report EI-02-11, Budgeting costs and returns for Indian River Florida citrus production 2001-02, http://www.lal.ufl.edu/extension/indian-riverbudget.pdf Economic Information Report EI-02-10, Budgeting costs and returns for Southwest Florida citrus production 2001-02, http://www.lal.ufl.edu/extension/southwest-floridabudget.pdf

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2001-2002 Comparative Citrus Budgets 3 Table 1. A listing of estimated comparative central Florida (Ridge) citrus production costs per acre for 2001-2002.z Costs for Mature (10+ years old Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program Reduced Cost Processed/Fresh Fruit Cultural Program Typical/Historical Fresh Fruit Cultural Program ($/acre) ($/acre) ($/acre) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Discing (2/year) 17.96 17.96 17.96 Mechanical mow middles (4/year) 42.00 42.00 42.00 General grove work (2 hours/acre) 24.76 24.76 24.76 Herbicide (1/2 tree acre treated) Application (2) 27.14 27.14 27.14 Material 62.77 89.41 89.41 Spot treatment (material/application) 17.99 17.99 17.99 Total herbicide cost 107.90 134.54 134.54 Spray Summer oil #1 (processed/250 GPA) or Post-bloom (fresh/150 GPA) Application 27.50 27.50 25.89 Material 50.50 64.04 63.51 Total spray cost 78.00 91.54 89.40 Summer oil #2 (250 GPA) Application 27.50 27.50 27.50 Material 31.25x 31.25x 74.38 Total spray cost 58.75 58.75 101.88 Supplemental fall miticide Application (150 GPA) 24.82 Material 10.50 Total miticide cost 35.32 Fertilizer (bulk) Application (3) 24.81 24.81 24.81 Material (16-0-16-4 MgO @ 180 lbs N per acre & 204 lbs N per acre) 92.25 104.55 104.55 Total fertilizer cost 117.06 129.36 129.36 Dolomite (1 ton/every 4 years) Material/application 8.90 8.90 8.90 Pruning Topping ($36.75/A 2.5 years)w 14.70 14.70 14.70 Remove brush from trees after topping ($24.41/A 2.5 years)w 9.76 9.76 9.76

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2001-2002 Comparative Citrus Budgets 4 Table 1. A listing of estimated comparative central Florida (Ridge) citrus production costs per acre for 2001-2002.z Costs for Mature (10+ years old Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program Reduced Cost Processed/Fresh Fruit Cultural Program Typical/Historical Fresh Fruit Cultural Program ($/acre) ($/acre) ($/acre) Subtotals Totals Subtotals Totals Subtotals Totals Hedging ($33.90/A 2 years)w 16.95 16.95 16.95 Chop/mow brush after hedging ($8.53/A 2 years)w 4.27 4.27 4.27 Total pruning cost 45.68 45.68 45.68 Tree Replacement @ 1-3 years of age (3 trees/acre) Remove trees: pull, stack, burn (3 trees, using front-end loader) 14.94 14.94 14.94 Prepare Site & Plant Trees (3 reset trees) 26.45 26.45 26.45 Supplemental fertilizer, tree wraps, sprout, maintenance (trees 1-3 years old) 29.67 29.67 29.67 Total tree replacement cost 71.06 71.06 71.06 Irrigation Microsprinkler system 143.22 143.22 143.22 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 715.29 767.77 Fall Miticide Spray Application (150 GPA) 25.89 25.89 Material 34.52 34.52 Total fall miticide cost 60.41 60.41 IRRIGATED FRESH FRUIT PRODUCTION COSTS 828.18 904.49 Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL, June 2002. u, v, w, x, y See Table 4. z Estimated comparative costs are for the example grove situation described in the Economic Information Report Series "Budgeting Costs and Returns for Central Florida Citrus Production" and may not represent your particular situation. Central Florida production area refers to Polk and Highlands Counties, but costs in this report are also applicable to Hardee, Hillsborough, Lake, Orange, and Pasco Counties.

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2001-2002 Comparative Citrus Budgets 5 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 2001-2002.z Costs for Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program Reduced Cost Processed/Fresh Fruit Cultural Program Typical/Historical Fresh Fruit Cultural Program ($/acre) ($/acre) ($/acre) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Mechanical mow middles (3/year) 25.10 25.10 25.10 Chemical mow middles (2/year) 13.84 13.84 13.84 General grove work (2 hours/acre) 24.92 24.92 24.92 Herbicides (1/2 tree acre treated) Application (3) 25.65 25.65 25.65 Material 74.67 95.28 95.28 Total herbicide cost 100.32 120.93 120.93 Spray Post-bloom Application (PTO-150GPA) 22.67 Material 27.30 Total post-bloom cost 49.97 Summer oil #1 Application (PTO-150 GPA) 23.81 23.81 23.81 Material 42.68 61.51 71.06 Total summer oil #1 cost 66.49 85.32 94.87 Summer oil #2 Application (PTO-150 GPA) 22.67 22.67 21.90 Material 28.44x 28.44x 20.19 Total summer oil #2 cost 51.11 51.11 42.86 Fertilizer (bulk) Application (3) 21.60 21.60 21.60 Material (15-2-15-2.4 MgO @ 180 lbs N per acre & 204 lbs N per acre) 89.64 92.40 92.40 Total fertilizer cost 111.24 114.00 114.00 Dolomite (1 ton/every 3 years) Material/Application 10.66 10.66 10.66 Pruning Topping ($29.63/A 2.5 years)w 11.88 11.88 11.88 Remove brush from trees after topping ($25.47/A 2.5 years)w 10.19 10.19 10.19 Hedging ($29.79/A 2 years)w 14.90 14.90 14.90 Chop/mow brush after hedging ($8.00/A 1.5 years)w 4.00 4.00 Total pruning cost 40.97 40.97 40.97

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2001-2002 Comparative Citrus Budgets 6 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 2001-2002.z Costs for Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program Reduced Cost Processed/Fresh Fruit Cultural Program Typical/Historical Fresh Fruit Cultural Program ($/acre) ($/acre) ($/acre) Subtotals Totals Subtotals Totals Subtotals Totals Tree Replacement @ 1-3 years of age (4 trees/acre) Remove trees: pull, stack, burn (3 trees, using front-end loader) 19.92 19.92 19.92 Prepare site and plant trees (4 reset trees) 43.44 43.44 43.44 Supplemental fertilizer, tree wraps, sprout, maintenance (trees 1-3 years old) 35.56 35.56 35.56 Total tree replacement cost 98.92 98.92 98.92 Irrigation Microsprinkler Systemv 143.22 143.22 143.22 Clean ditches (weed control) 13.00 13.00 13.00 Ditch & canal maintenance 14.49 14.49 14.49 Water control (pump water in/out of ditches & canals 10.85 10.85 10.85 Total irrigation cost 181.56 181.56 181.56 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 725.13 767.33 Supplemental Post-Bloom Spray Application (250 GPA) 23.81 23.81 Material 42.68 42.68 Total post-bloom spray 66.49 66.49 Fall Miticide Spray Aerial application (15 GPA) 7.67 7.67 Material 31.86 31.86 Total fall miticide cost 39.53 39.53 IRRIGATED FRESH FRUIT PRODUCTION COSTS 873.35 924.62 Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL, June 2002. u, v, w, x, y See Table 4. z Estimated comparative costs are for the example grove situation described in the Economic Information Report Series "Budgeting Costs and Returns for Southwest Florida Citrus Production" and may not represent your particular situation. Southwest Florida production area refers to counties in the Florida Agricultural Service "Southern Production Area". However, costs shown are applicable in South Central Florida counties such as DeSoto and Sarasota.

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2001-2002 Comparative Citrus Budgets 7 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 2001-2002.z Costs for Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program Reduced Cost Processed/Fresh Fruit Cultural Program Typical/Historical Fresh Fruit Cultural Program ($/acre) ($/acre) ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Mechanical mow middles (3/year) 27.51 27.51 27.51 Chemical mow middles (2/year) 14.34 14.34 14.34 General grove work (2 hours/acre) 24.92 24.92 24.92 Herbicides (1/2 tree acre treated) Application (3) 36.57 36.57 36.57 Material 78.27 104.80 104.80 Total herbicide cost 114.84 141.37 141.37 Spray Post-bloom Application (PTO 250GPA) 29.40 29.40 Material 28.60 41.08 Total post-bloom cost 58.00 70.48 Summer oil #1 Application (250 GPA) 29.40 29.40 29.40 Material 50.50 67.37 67.37 Total summer oil #1 cost 79.90 96.77 96.77 Summer oil #2 Application (PTO 250 GPA)29.40 29.40 29.40 Material 31.25x 22.18 22.18 Total summer oil #2 cost 60.65 51.58 51.58 Fertilizer (bulk) Application (3) 21.60 21.60 21.60 Material (12-2-12-2.4 MgO @ 125 lbs N per acre & 100 lbs N per acre) 74.88 60.12 74.88 Total fertilizer cost 98.48 81.72 96.48 Dolomite (1 ton/every 3 years) Material/Application 11.66 11.66 11.66 Pruning Topping ($26.39/A divided by 2 years)w 13.20 13.20 13.20 Remove brush from trees after topping ($25.47/A divided by 2 years)w 12.74 12.74 12.74 Hedging ($23.83/A divided by 1.5 years)w 15.89 15.89 15.89 Chop/mow brush after hedging ($8.00/A divided by 1.5 years)w 5.33 5.33 5.33

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2001-2002 Comparative Citrus Budgets 8 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 2001-2002.z Costs for Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program Reduced Cost Processed/Fresh Fruit Cultural Program Typical/Historical Fresh Fruit Cultural Program ($/acre) ($/acre) ($) Subtotals Totals Subtotals Totals Subtotals Totals Raise Tree Skirts ($14.20/A 2 years)w 7.10 7.10 Total pruning cost 47.16 54.26 50.26 Tree Replacement @ 1-3 years of age (5 trees/acre) Remove trees: pull, stack, burn (4 trees using front-end loader) 24.90 24.90 24.90 Prepare Site and Plant Trees (3 reset trees) 57.90 57.90 57.90 Supplemental fertilizer, tree wraps, sprout, maintenance (trees 1-3 years old) 44.45 44.45 44.45 Total tree replacement cost 127.25 127.25 127.25 Irrigation Microsprinkler Systemv 143.22 143.22 143.22 Clean Ditches (weed control) 13.00 13.00 13.00 Ditch & Canal Maintenance 14.49 14.49 14.49 Water Control (pump water in/out of ditches & canals 10.85 10.85 10.85 Total irrigation cost 181.56 181.56 181.56 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 786.27 870.94 Supplemental Post Bloom Spray 2 Applications (PTO-250 GPA) 48.94 48.94 Material 19.46 19.46 Total supplemental post-bloom spray 68.40 68.40 Fall Miticide Spray Aerial application (15 GPA) 7.67 7.67 Material 34.52 34.52 Total fall miticide cost 42.19 42.19 IRRIGATED FRESH FRUIT PRODUCTION COSTS 981.53 1,008.77 Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL, June 2002. u, v, w, x, y See Table 4.

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2001-2002 Comparative Citrus Budgets 9 Table 4. Footnotes for Tables 1, 2, and 3. Footnotes for Tables 1, 2, and 3 u Although estimated annual per-acre grove costs are representative for mature citrus groves (10+ years), grove-care costs for specific grove sites may differ based on tree age, tree density, and grove practices. The budget cost items have been revised to reflect current grove practices, so revised costs for each grove practice shown may be higher or lower than previously reported. Budget costs for Central Florida, Indian River, and Southwest Florida represent custom-managed operations, which means all equipment costs are based on average custom rate costs and a 10% handling and supervision charge is added to material cost. A management charge for equipment supervision is not included. The extended drought situation during the last two seasons has increased tree stress, especially trees weakened from blight and tristeza. This has resulted in greater tree loss as reflected in higher reset replacement costs. Also, average per-acre yields have been affected by drought conditions. v Irrigation Expense includes the following: Microsprinkler Drip ($/acre) Variable Operating Expense (diesel) 40.30 37.88 Fixed-Variable Expense (annual maintenance) 46.37 40.40 Total Cash Expenses 86.67 78.38 Fixed-Depreciation Expense 56.56 45.25 Total Cash and Fixed Expenses 143.22123.63 w Per-acre costs shown in parenthesis are for 2002. x Spray materials include copper (Cu), oil, and nutritionals. y Where "equipment use" or "application" is listed (discing, hedging, spray application), "average custom charge" (cost) represents charges for equipment repairs, maintenance, labor, and overhead. Exceptions are mowing, spraying, and herbicide application costs for Southwest Florida which "represent costs for non-custom managed (owner-managed) operations." Management charges/costs are based on monthly charges or percentage of gross management sales. There can be harvesting supervision costs for overseeing/coordinating harvesting. Cost items not included in the budget are ad valorem taxes and interest on grove investments. Overhead and adminstrative costs may be 12% of total grove-care costs; costs vary from grove to grove, depending on age, location, and time of purchase or establishment. Except for Southwest Florida, a 10% supervision/handling charge of cost/price of materials is included in "materials expense."

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2001-2002 Comparative Citrus Budgets 10 Table 5. Total delivered-in cost for central Florida (Ridge) valencia oranges, southwest Florida hamlin oranges and Indian River fresh packed grapefruit, 2001-2002.a Central (Ridge) Florida (Processed Valencia Oranges) Southwest Florida (Processed Halmin Oranges) Indian River Florida (Fresh Packed Grapefruit) $/Acre $/Box $/P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/Carton Total Production/ Cultural Costs 767.771.721 0.2532767.331.522 0.24561,008.772.4191.2006 Interest on Operating (Cultural) Costs 38.390.086 0.012738.370.076 0.012350.440.1210.0605 Management Costs 48.000.118 0.015848.000.095 0.015448.000.1020.0512 Taxes/Regulatory Costs Property & water mgmt taxes 58.920.132 0.019461.000.121 0.019544.800.1070.0537 Drainage district tax 60.000.1440.0719 Fly protocol costb 44.700.1070.0536 Canker decontamination costsc 27.72 0.062 0.0091 27.72 0.055 0.0089 27.72 0.066 0.0332 Total taxes/ regulatory costs 86.64 0.194 0.0286 88.72 0.176 0.0284 177.22 0.425 0.2125 Total Direct Grower Costs 940.802.109 0.3102942.421.870 0.30161,284.433.0671.5337 Interest on Average Capital Investment Costs 375.85 0.843 0.1239 367.85 0.730 0.1177 389.85 0.935 0.4674 Total Grower Costs 1,316.652.952 0.43411,310.272.600 0.41941,674.284.0022.0011 Harvesting Costsd Pick, haul, & canker decontamination 933.032.092 0.30761,088.642.160 0.3484810.231.9430.9715

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2001-2002 Comparative Citrus Budgets 11 Table 5. Total delivered-in cost for central Florida (Ridge) valencia oranges, southwest Florida hamlin oranges and Indian River fresh packed grapefruit, 2001-2002.a Central (Ridge) Florida (Processed Valencia Oranges) Southwest Florida (Processed Halmin Oranges) Indian River Florida (Fresh Packed Grapefruit) $/Acre $/Box $/P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/Carton Fruit drenching (fresh) 62.550.1500.0750 DOC assessment 73.59 0.165 0.0243 83.16 0.165 0.0266 125.10 0.300 0.1500 Total Harvesting and Assessment Costs 1,006.62 2.257 0.3319 1,171.80 2.375 0.3750 977.88 2.393 1.1965 Total Delivered-In Cost 2,323.27 5.209 0.7660 2,482.07 4.925 0.7944 2,672.16 6.395 3.1976 P.S. = Pound Solids (2 cartons per box) 446 boxes/acre @ 6.8 P.S./box Valencia Oranges 504 boxes/acre @ 6.2 P.S./box Hamlin Oranges 417 boxes/acre (white and red grapefruit) 100% Packout Average Tree Density 112 Trees Per Acre 145 Trees Per Acre 95 Trees Per Acre Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL, June 2002. a Total production/cultural costs for Central (Ridge) Florida and Southwest Florida represent a "reduced cost processed orange cultural program" that many growers are currently using. Production/cultural costs for Indian River represent a "historical cost cultural program" for fresh packed/export grapefruit. The costs represent a mature productive citrus grove that is 10 years or older. b "Fly protocol cost" is a certification program for exporting citrus to Japan. Depending on the number of times the fruit is harvested, bait/spray treatment costs may be as high as $70/acre. c Canker decontamination costs ranged from an averge of $5.80/acre for spraying citrus groves to an average of $36.85 in quarantine areas. d Harvesting costs do not include charges for unloading/rejecting fruit at a processing plant or handling/hauling costs for packinghouse eliminations.